There are different options available for calculating landed costs with discounts. Customers who use the Landed Cost API can use Zonos' algorithm to distribute discounts proportionately, or manage applying discounts on their own. Free items and free shipping can be included in the calculations, as long as all amounts are positive.
Note: Currently, this functionality is only available for customers who are using our Landed Cost API.
Here are a few different ways to handle discounts at checkout:
Let the Zonos algorithm calculate the discount in the landed cost.
Use your own algorithm to calculate the discounts, then request a landed cost.
Obtain a landed cost request without applied discounts.
Your decision on how to manage discounts with a landed cost calculation will be based on the ability to modify the commercial invoice. See our document on how to apply discounts or free shipping to a commercial invoice to learn more.
Zonos Landed Cost can automatically distribute discounts on your behalf. This lets you offer discounts to cross-border shoppers without over or undercharging duties and taxes.
Discount types
Order level discounts
You can send an order-level discount, e.g., a promo code, using a landed cost request in the discounts array.
1{
2"discounts":[
3{
4"id":"SURRENDER",
5"amount":10,
6"detail":null
7}
8]
9}
The discount amount will then be proportionately distributed between the items in the landed cost request up to the total discount value for the order. The item value change will be reflected in the note field in the response for each item. See the example in the promo code section of the discounts on commercial invoices document.
Note: If the value of the discount brings the value of the items to a near-zero or negative amount, the discounts will also be applied to the shipping costs.
1{
2"customs":{
3"amount_shipping":20.0,
4"delivery_duty_paid":"unavailable",
5"items":[
6{
7"id":"294395",
8"amount":15.0,
Free items
To send a free item, we recommend sending an amount_discount that equals the item amount. This will net the total amount to 0 USD.
In cases when the items.amount is 0 and the amount_discount is not used, an account default of 5.00 USD will be used as an estimated value for the free item. The remaining 5.00 USD will be distributed between the remaining items. This default value can be changed inside Dashboard.
Please note that we do not support 100% discounts on the only item in the order. We allow items to be discounted at 100% only if there are other items in the order with a price greater than zero.
1{
2"items":[
3{
4"id":"294395",
5"amount":20.0,
6"amount_discount":null,
7"country_of_origin":"FR",
8"description_retail":"Mars Attacks Men's Tee Black",
9"hs_code":"6217.10",
10"quantity":1,
11"weight":1.0,
12"weight_unit":"pound"
13},
14{
15"id":"294395"
When the landed cost request includes a free item (the discount of the item equals the total cost of the item), the discount will be applied the same way as order-level discounts—each item in the order will appear proportionately discounted up to the amount of that single item, rather than that particular item showing a 100% discount.
Below is an example response to the request shown above.
12"description_retail":"Mars Attacks Men's Tee Black",
13"detail":null,
14"dimensions":{
15"height":4.0,
16"length":6.0,
17"unit":"inches",
18"width":11.0
Free shipping
To request a landed cost with free shipping, we recommend adding the shipping as we did with the discount. Input the normal shipping amount, and then input the amount_discount as the same value as the shipping.
1{
2"shipping":{
3"amount":7,
4"amount_discount":7,
5"service_level":"ups_express_saver"
6}
7}
The customs array will contain the adjusted amounts on the items in the same way that order-level discounts are applied. The note field will indicate what was changed.
1{
2"customs":{
3"amount_shipping":7.0,
4"delivery_duty_paid":"unknown",
5"items":[
6{
7"id":"294395",
8"amount":16.0,
9"country_of_origin":"CN",
10"country_of_origin_source":"platform",
11"description_customs"
Warning
All amounts in the Landed Cost request (amount, amount_discount, and amount_shipping) must be greater than 0. If any negative number is sent in the request, the request will return an error.
You can use your own formulas and rules to apply discounts across the items in a landed cost request. This allows you to remain in full control of how the landed cost is calculated.
For valid business reasons, a retailer may decide to exclude discounts in a landed cost calculation. For instance, if your commercial invoice amount is unreconcilable with the cart amount and applied discount, then it may be more practical to exclude the discount in the landed cost calculation. If you choose to exclude the discount, the landed cost amount will be higher, but it will match what is shown on the commercial invoice.
I am using the Duty and Tax app for Shopify. Will promo codes and discounts work with Zonos?
Promo codes will work as usual, but any discount or promo code that reduces shipping costs may also reduce the duties and taxes included in the shipping amount. Contact your Zonos support rep for more details.
Manage item discounts
Manage discounts
How discounts impact landed cost calculations.There are different options available for calculating landed costs with discounts. Customers who use the Landed Cost API can use Zonos' algorithm to distribute discounts proportionately, or manage applying discounts on their own. Free items and free shipping can be included in the calculations, as long as all amounts are positive.
Landed cost with discounts
Here are a few different ways to handle discounts at checkout:
Your decision on how to manage discounts with a landed cost calculation will be based on the ability to modify the commercial invoice. See our document on how to apply discounts or free shipping to a commercial invoice to learn more.
Zonos Landed Cost can automatically distribute discounts on your behalf. This lets you offer discounts to cross-border shoppers without over or undercharging duties and taxes.
Discount types
You can send an order-level discount, e.g., a promo code, using a landed cost request in the
discountsarray.{"discounts": [{"id": "SURRENDER","amount": 10,"detail": null}]}The discount amount will then be proportionately distributed between the items in the landed cost request up to the total discount value for the order. The item value change will be reflected in the
notefield in the response for each item. See the example in the promo code section of the discounts on commercial invoices document.{"customs": {"amount_shipping": 20.0,"delivery_duty_paid": "unavailable","items": [{"id": "294395","amount": 15.0,To send a free item, we recommend sending an
amount_discountthat equals the itemamount. This will net the total amount to 0 USD.In cases when the
items.amountis0and theamount_discountis not used, an account default of 5.00 USD will be used as an estimated value for the free item. The remaining 5.00 USD will be distributed between the remaining items. This default value can be changed inside Dashboard.Please note that we do not support 100% discounts on the only item in the order. We allow items to be discounted at 100% only if there are other items in the order with a price greater than zero.
{"items": [{"id": "294395","amount": 20.0,"amount_discount": null,"country_of_origin": "FR","description_retail": "Mars Attacks Men's Tee Black","hs_code": "6217.10","quantity": 1,"weight": 1.0,"weight_unit": "pound"},{"id": "294395"When the landed cost request includes a free item (the discount of the item equals the total cost of the item), the discount will be applied the same way as order-level discounts—each item in the order will appear proportionately discounted up to the amount of that single item, rather than that particular item showing a 100% discount.
Below is an example response to the request shown above.
{"customs": {"amount_shipping": 12.5,"delivery_duty_paid": "unknown","items": [{"id": "294395","amount": 16.33,"country_of_origin": "CN","country_of_origin_source": "platform","description_customs": "Men's t-shirt 100% cotton","description_retail": "Mars Attacks Men's Tee Black","detail": null,"dimensions": {"height": 4.0,"length": 6.0,"unit": "inches","width": 11.0To request a landed cost with free shipping, we recommend adding the shipping as we did with the discount. Input the normal shipping
amount, and then input theamount_discountas the same value as the shipping.{"shipping": {"amount": 7,"amount_discount": 7,"service_level": "ups_express_saver"}}The
customsarray will contain the adjusted amounts on the items in the same way that order-level discounts are applied. Thenotefield will indicate what was changed.{"customs": {"amount_shipping": 7.0,"delivery_duty_paid": "unknown","items": [{"id": "294395","amount": 16.0,"country_of_origin": "CN","country_of_origin_source": "platform","description_customs"All amounts in the Landed Cost request (
amount,amount_discount, andamount_shipping) must be greater than 0. If any negative number is sent in the request, the request will return an error.Apply discounts on your own
You can use your own formulas and rules to apply discounts across the items in a landed cost request. This allows you to remain in full control of how the landed cost is calculated.
For valid business reasons, a retailer may decide to exclude discounts in a landed cost calculation. For instance, if your commercial invoice amount is unreconcilable with the cart amount and applied discount, then it may be more practical to exclude the discount in the landed cost calculation. If you choose to exclude the discount, the landed cost amount will be higher, but it will match what is shown on the commercial invoice.
Frequently asked questions
I am using the Duty and Tax app for Shopify. Will promo codes and discounts work with Zonos?
Promo codes will work as usual, but any discount or promo code that reduces shipping costs may also reduce the duties and taxes included in the shipping amount. Contact your Zonos support rep for more details.
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